Qualms arise over outsourcing of electronic medical records

Indian technology companies are eyeing a coming wave of U.S. spending to digitize health-care records. But sensitivity over outsourcing and resistance by American hospitals to sending medical information overseas could thwart efforts to win big contracts.

The U.S. government next year will begin to dole out billions of dollars to health-care providers who adopt electronic medical records. Doctors also face a federal mandate to upgrade software as the U.S. switches to a new system of insurance

BlueCross BlueShield of South Carolina, which has generated hundreds of millions of dollars in profits over the past five years, has boosted the pay of board members and top executives while sticking...